Marketing Relationship Survey: Agency-Client Relationship in 2021
For the past three years, Setup has conducted a Marketing Relationship Survey to take the pulse on how Companies and Agencies operate and work together. To help us navigate the atypical times of 2020, we also conducted three shorter COVID-impact surveys to identify trends for Brands and Agencies. We’re excited to share the results of these efforts to provide insight and perspective on the current state of Agency-Client relationships.
Who did we survey?
Because Setup is a marketing matchmaker between Companies and Agencies, we maintain strong relationships with both sides and are uniquely positioned to report on these relationships, plans, and initiatives.
Setup surveyed over 300 Marketers from both Brands and Agencies - 66% of Brand respondents are in Director, VP, or C-level positions, and 55% of Agency respondents are at the Executive level. The responses include Brands like IBM, American Cancer Society, Georgia-Pacific, WarnerMedia, Regal Cinemas, and Syracuse University; and Agencies like Razorfish, Morrison, Ansira, North Highland, Nebo, and Modo Modo.
What did we learn from surveying marketing agencies and marketing brand leaders?
30% of Brand marketers say they’re likely/somewhat likely to switch Agencies in the next 6 months, so there is more Agency opportunity ahead.
The past year has unveiled to many Brands which Agency relationships are working, and which ones aren’t, and they are not just taking note, but also making changes. Nobody has time to invest in a relationship that isn’t moving in the right direction or taking care of necessary business. So Agencies have a chance to audit the effectiveness of their current services, communication methods with clients, and work output in order to put their best foot forward to find new opportunities with new clients.
“NCR is positioned to help our customers gain the agility they need to adapt to market demands as they change and that is made possible by working with dependable agency partners to meet customer expectations,” said Katie Kirschner, Vice President of Brand, Content and Digital Marketing at NCR. “We have shortened our planning cycles to pivot rapidly to adjust to dynamic conditions. With that, we also have continued to reevaluate our agency partnerships to ensure we remain nimble.”
The importance of aspects like Seniority of Team, Client Experience, Agency Awards/Recognition, Proximity and Specialized Capabilities declined between 2018 and 2020, while Chemistry, Professionalism, Creativity and Cost remain high and steady as important factors when selecting an agency.
Chemistry is #1 for both Brands and Agencies, and everyone understands that. Read Building Chemistry in the Agency-Client Relationship for more.
Can an Agency pitching a new Client do anything to set the stage to create great chemistry? Absolutely they can. One way is to check all those other boxes first, so personalities and passions can shine.
Client Experience and Seniority of Team have become less important in this age of COVID, especially as technology becomes more crucial for business. Agencies are leaning on digital natives to help navigate these evolving times, and Brands are leaning on digitally native agencies. Brands are more apt to try new things and launch initiatives with shorter planning cycles and more frequent evaluations, learning as they go. Additionally, we learned that during the course of COVID, 92% of Brand marketers say that Marketing has either been elevated in their organization or stayed the same. Earlier in COVID, companies were cutting Marketing budgets. But as the pandemic progressed, Marketing’s importance got elevated. It’s a dynamic time to work and learn in Marketing, whether on the Brand or Agency side.
Brand marketers are increasing Spend in these top 5 areas by 50% or more in 2021 vs. 2020.
Unsurprisingly, digital marketing saw a huge upswing as a result of COVID. Setup found this trend isn’t slowing down - the top five areas where Companies are continuing to increase marketing spend are all digital services, including content marketing, video, digital media, website/UX, and social media/influencer marketing.
Agencies who do specialize or offer digital services are poised to be in a heightened position to survive and thrive post-COVID compared to those who don’t work in the digital space.
One third of Brand marketers want their agencies to better understand their business + seek greater transparency and communication between Agency and Brand. Additionally, over half of Agencies crave transparency and better communication with a partner who sets reasonable expectations and listens.
Agencies and Brands essentially want the same thing, but they are speaking two different languages. If so many representatives on both sides want that transparency and better communication, it should be achievable through concerted efforts to listen to each other, be open, and change old patterns.
“From the brand standpoint, agencies can become better partners if they genuinely approach the business with curiosity, innovation, and strategic creative thinking to drive greater results,” said Summer Peabody, PR & Marketing Manager for Hunter Boot USA. “Agencies can oftentimes get caught up in the creative or sleek UX design - which is important - but none of it matters if a hyper-focus on creative overshadows greater business objectives and fails to elevate the brand to drive substantial results.”
Brands are practically begging Agencies to research and understand their business, ask relevant questions and seek out new ways to achieve shared business goals. While Agencies ask Brands to be transparent - clarify their objectives and what success looks like. Jane Duncan, Group Business Director at The Variable, says, “We really value when clients are thoughtful and intentional about information that could be useful in agency work -- not seeing sharing data, research, and internal intel as a way for the agency to upsell, but really understanding that the more we know about the business, the better partners we can be.”
If Brands and Agencies open up to each other more, imagine the amazing work they can accomplish together on behalf of the Brands.
Referrals continue to be the best way for Agencies and Brands to find each other.
90% of Agencies say that referrals (by former clients, employees or friends of the agency) are the most effective way to acquire new clients. And Companies find new marketing Agencies most often through internal or external referrals, along with word of mouth recommendations. What’s the lesson here? Don’t burn bridges + nurture your personal networks - you never know where the next incredible referral will come from.
Referrals happen to be the lifeblood of how we operate at Setup - don’t hesitate to reach out if you’re a Company looking for a new or different Agency or if you’re an Agency seeking qualified new business leads.
Ad Age featured the results from this same survey in their article “One Third of Brands are Considering Change of Agency in the Next Six Months: Study.” Please read here to learn more.
Setup’s purpose is to connect and empower marketers because we are better together. Our vision is to become the connection point for relationships and resources that distill the complex marketing landscape.